Official announcements from OpenAI or major financial news outlets like Bloomberg, Reuters, or the Wall Street Journal

OpenAI to Raise $6.5 Billion, Shift to For-Profit Model with $150 Billion Valuation, Led by Thrive Capital

Sep 19, 2024, 10:01 PM

OpenAI is undergoing a significant shift in its corporate structure, transitioning from a non-profit model to a traditional for-profit model. This change is aimed at facilitating a substantial fundraising effort, with the company looking to raise $6.5 billion in equity funding. The new structure is expected to support OpenAI's ambitious goals in artificial general intelligence (AGI) and drive its valuation to an estimated $150 billion. Thrive Capital is leading the funding round with a $1.25 billion investment, and notable tech giants such as Microsoft, Nvidia, and Apple are also in talks to invest, contributing approximately $2 billion to $3 billion combined. The funding round has been oversubscribed by billions, with investors required to make a minimum contribution of $250 million. OpenAI will notify prospective investors on Friday whether they have been accepted into the funding round. The restructuring could also remove the profit cap for investors.